Indian economy can grow to $10 trillion in next two decades, says president Pranab Mukherjee

The president said that the country's economic conditions are again looking bright.

President winds up 6-day state visit to A-Pac region: Report. Picture: President Pranab Mukherjee [File Photo]Reuters

Stating that the Indian economy has remained resilient to turbulent external conditions, president Pranab Mukherjee on Saturday said that the country has the "potential" to become a $10 trillion economy over the next two decades.

"We are a $2.1 trillion economy and have the potential to be a $10 trillion economy over the next two decades provided we are able to give fillip to manufacturing and innovation," PTI quoted Mukherjee as saying.

Excluding the less than 5% growth posted in the financial year 2012-13, the Indian economy has displayed resilience to challenging global economic environment, he said.

"Our economy has admittedly withstood the challenging global economic scenario of the past few years. Despite the economic slowdown afflicting major economies in the world, India has remained largely insulated," he said.

Mukherjee, who was a finance minister during Congress regimes earlier, said the country's economic conditions are again looking bright after recording 7.2% growth in 2014-15.

"It is expected to improve further as other macro economic indicators show substantial improvement," he said.

Inflation is under check and industrial activity is showing signs of revival, he said.

"The external sector should not be a cause of concern despite a not so encouraging export performance last year. Slowdown in global economic activity also finds reflection in declining import with a substantial reduction in our import dependence on oil," Mukherjee said.

The country should be able to reach the fiscal deficit target of 3% by 2017-18, he said, adding that India's current account deficit (CAD) has come down to 1.4% in 2014-15 compared to 1.7% in the previous financial year.

"The opportunities that are emerging in our economy are there for the taking. Investors, both domestic and foreign, should have their confidence to gain handsome returns from their investments in India," Mukherjee said.